Singapore should remain vigilant to signs of deflation: International Monetary Fund

The article reports the IMF (International Monetary Fund) policy indication to the MAS (Monetary Authority of Singapore) against the signs of deflation in the Singapore Economy. The Continuing falling prices, since 17 months, has been attributed to sluggish demand and thus lesser than expected Consumption and the existing overcapacity (Surplus) in production. Taking cues from the lower Inflation figures, the MAS will continue to pursue Expansionary Monetary and Fiscal policy to stimulate Aggregate Demand and Economic Growth in Singapore.

Topics include Inflation, Disinflation, relationship between Interest rates and Inflation, Expansionary Fiscal and Monetary Policies. Explain using the National output diagrams and discuss the combined effect of Expansionary Demand side and Supply side policies on Price and National Income (Economic Growth).

Evaluation will cover effectiveness of Expansionary Fiscal and Monetary policy to tackle Recession, Government Intervention to tackle Deflation, Unemployment, and impact on the Consumers, Producers and Society in short term and long term.